5 Best Data Center Stocks to Invest In

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 83

Much like its rival NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices, Inc. (NASDAQ:AMD) is gaining popularity in the data center industry, primarily due to its 3rd generation EPYC processors which are currently one of the best-performing processors on the market for high-performance computing and are capable of handling intense workloads. AMD processors are being used by top cloud service providers such as Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), which is why it is one of the best data center stocks to buy right now.

On June 30, Northland analyst Gus Richard reiterated his $95 price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) and upgraded the stock to Outperform from Market Perform.

At the end of Q1 2022, 83 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) with stakes worth $6.94 billion. This is compared to 69 positions in the previous quarter with stakes worth $6.74 billion. The hedge fund sentiment for the stock is positive.

In the first quarter of 2022, Ken Fisher’s Fisher Asset Management raised its stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) by 23%, bringing them to $2.66 billion. As of March 31, Fisher Asset Management owns more than 24.38 million shares of the company and is the largest shareholder.

Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2021 investor letter:

“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”